Australian Bureau of Statistics (ABS) data shows Australian residential property prices rose 6.7% in the second quarter of 2021. This was the strongest quarter-on-quarter growth since the ABS began recording the index in September 2003.

Although Australia's capital and many state capitals have imposed prolonged social distancing orders due to Covid-19, these major cities are all seeing property prices rise. In which, Canberra (up 8.2%) Sydney (up 8.1%) and Hobart (up 6.3%) are the leading places in terms of housing price growth.

According to the latest report from property marketing group Domain, the median home auction price in Sydney is $1.92 million ($1.41 million) and Melbourne is $1.19 million ($876,619). While Sydney, Brisbane and Canberra recorded record high real estate liquidity in August 2021. House prices in Australia's capital and state capital cities rose sharply despite the Covid-19 epidemic Perth and Darwin, two cities that often experience moderate property price volatility, also recorded increases respectively. are 4.8% and 4.6% respectively.

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Michelle Marquardt, Head of Price Statistics at the Australian Bureau of Statistics, said the market was impacted by limited housing supply and historically low cash rates. “The continued increase in property prices comes at a time when bank interest rates are at record lows. The persistently low inventory levels in the market, while the high demand for home purchases, has caused real estate transactions to increase at a rapid rate, ”Mr. Marquardt explained.

“With the exception of Hobart and Darwin, Australia's major cities continue to see single-family price increases more strongly than single-family properties such as apartments or townhouses. The price growth of both properties is driven by the high-end segments of the market.”

According to Mr. Philip Lowe, Governor of the Reserve Bank of Australia (RBA), house prices are higher than before the Covid-19 pandemic with an amazing increase - 19%. Notably, a boom in residential property prices was noted across Australia.

He said he would not raise interest rates just to cool down the real estate market: 'Some analysts have suggested that the central bank should raise the cash rate to cool down property prices. However, I want to make it clear that this is not part of our plan. Yes, higher interest rates equate to lower housing prices, but it also means fewer jobs and lower wage growth. This is an ineffective trade-off in the current circumstances.”

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